Analyzing Atlanticus (NASDAQ:ATLC) and Greystone Housing Impact Investors (NYSE:GHI)

Greystone Housing Impact Investors (NYSE:GHI) and Atlanticus (NASDAQ:ATLC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Risk and Volatility

Greystone Housing Impact Investors has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Atlanticus has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Valuation & Earnings

This table compares Greystone Housing Impact Investors and Atlanticus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Housing Impact Investors	$91.27 million	1.78	$21.32 million	$0.18	38.17
Atlanticus	$1.31 billion	0.77	$111.30 million	$5.63	11.89

Atlanticus has higher revenue and earnings than Greystone Housing Impact Investors. Atlanticus is trading at a lower price-to-earnings ratio than Greystone Housing Impact Investors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Greystone Housing Impact Investors and Atlanticus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Housing Impact Investors	8.11%	8.07%	1.55%
Atlanticus	7.46%	22.86%	2.86%

Institutional and Insider Ownership

9.0% of Greystone Housing Impact Investors shares are owned by institutional investors. Comparatively, 14.2% of Atlanticus shares are owned by institutional investors. 1.8% of Greystone Housing Impact Investors shares are owned by insiders. Comparatively, 50.4% of Atlanticus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Greystone Housing Impact Investors and Atlanticus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Housing Impact Investors	1	0	4	0	2.60
Atlanticus	0	2	5	0	2.71

Greystone Housing Impact Investors presently has a consensus price target of $13.00, indicating a potential upside of 89.20%. Atlanticus has a consensus price target of $90.00, indicating a potential upside of 34.43%. Given Greystone Housing Impact Investors’ higher possible upside, research analysts clearly believe Greystone Housing Impact Investors is more favorable than Atlanticus.

Summary

Atlanticus beats Greystone Housing Impact Investors on 10 of the 14 factors compared between the two stocks.

About Greystone Housing Impact Investors

Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.